India: SteelMint benchmark scrap index remains stable – 15 Jun’22

SteelMint’s domestic steel scrap (end-cutting) index remained almost stable at INR 42,800/tonne (t) DAP Mandi Gobindgarh on 15 June 2022.

Meanwhile, prices of HMS 80:20 are at INR 40,700/t, and CR busheling at INR 44,600/t.

Scrap buyers raised their bids in the morning to secure adequate quantity backed by a marginal increase in semi-finished steel prices. Ingots prices in the Mandi market today rose by around INR 350/t at INR 48,350/t.

Trades and buying enquiries improved in the Raipur and Jalna markets in central India, and traders closed a moderate number of deals. Trading in the spot market was supported by the rise in semi-finished steel prices and positive market sentiments.

Market highlights

• End-cutting and ingot spread: The spread between end-cutting scrap and ingots remained stable at INR 6,000/t today. Last week, the spread was at around INR 6,200/t.
• Domestic and imported scrap price gap: In Mumbai, imported melting scrap (HMS 80:20) from Dubai origin was traded at $450/t CNF (INR 35,150/t) Nhava Sheva, down by $5/t on a d-o-d basis. Mumbai-based mills preferred imported scrap because domestic scrap is costlier by around INR 550/t.
• Raipur sponge iron-billet spread: The current conversion spread (margin) from pellet-based DRI (P-DRI) to steel billets in Raipur increased by INR 600/t to INR 15,000/t.

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